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Showing posts from December 26, 2011

The Current Economic Crisis - Islamic Finance is the Solution

Throughout the current economic and financial crisis one contrarian statistic has stood out. Financial assets offered by the Islamic Financial Services Industry (IFSI) and generally classified as "Shariah-compliant," were less affected by the crisis. Economist Loretta Napoleoni during a lecture at the University of New Mexico proclaimed, "Islamic finance ... [a] system [that] could help us to get out of the current crisis." Writing in the influential Turkish daily Today's Zaman, columnist Ibrahim Ozturk declared, "Islamic finance has entered a bright new stage of development, emerging after the global financial crisis as a more equitable and efficient alternative to the Western approach." The widely read Arabic daily Asharq Al Awsat opined, "Islamic banks are untouched by the current crisis due to the nature of Islamic banking especially that it does not deal in debt trading and distances itself from market speculation that takes place in Europe…